EU Delays Releasing Carbon Permits To Boost Prices

By Sean McLernon

Law360, New York (July 3, 2013, 3:00 PM ET) -- The European Parliament approved measures on Wednesday freezing the number of pollution allowances available in upcoming carbon auctions in an effort to increase prices that have fallen well below the European Union's expectations.

The move authorizes the delay of 900 million allowances in response to the plummeting price of carbon offsets that lawmakers have blamed on an initial oversupply and the continent's ongoing economic troubles.

EU lawmakers voted 344-311 in favor of the temporary fix, which environment committee chairman Matthias Groote said was necessary to ensure...